Property Selling Tip #3: Option Fees
When selling your property, do note that once you accept the 1% Option Fee and issue the Option to Purchase (OTP) to the Buyer, you have to fulfill your…
From the archive. Published in 2013. Prices, rules and interest rates may have changed since — check current figures before you decide.
When selling your property, do note that once you accept the 1% Option Fee and issue the Option to Purchase (OTP) to the Buyer, you have to fulfill your contractual duty to reserve the unit to be sold to this Buyer.
Your Buyer has anagreed upon period of time, usually 14 days, to pay the balance 4% to exercise the Option.The Buyer has a choice not to exercise the Option, in which casethe 1% Option Fee can be forfeited by you.
As for you, the Seller, you cannot undo the commitment in reserving the unit to sell to the contractual Buyer during this period even if a better offer comes along while you are waiting for the Option to be exercised.
By Eileen Tan and Ui Wei Teck, property investors and authors of Enjoying Mid-Life Without Crisis. This tip and dozens more are from their book.